Marketing Budget Planner
Reverse-engineer the marketing spend needed to hit revenue targets based on funnel metrics and CAC.
Total new revenue you want to generate this year (ARR target for new customers).
Average annual contract value (ACV) per new customer. Total new ARR ÷ new customers.
Average spend to win one customer: ads, sales salaries, tools, and agency fees.
% of leads that become paying customers. Accounts for all funnel stages combined.
Total Marketing Budget
$100,000
Monthly Budget
$8,333
Customers Needed
200
Leads Needed
1,000
Customer Acquisition Cost
$500.00
Tier vs LTV:CAC — high if <3:1 · healthy at 3–4 · strong at 4–6 · low at 6+
LTV:CAC is strong
Unit economics support growth. Monitor payback and channel-level CAC as you scale.
Open ltv cac calculator →Strong ROAS
Profitable ad efficiency. Test incremental budget on top-performing campaigns.
Open roas calculator →
How it works
Start with your revenue goal, work backward through average deal size and conversion rates to find required leads and customers, then multiply by CAC to estimate total marketing budget needed.
Frequently Asked Questions
How do you calculate a marketing budget?
Work backward from your revenue goal: Revenue Target ÷ Average Deal Size = Customers needed. Then divide by funnel conversion rates to find required leads and traffic. Finally, multiply customers by CAC: Budget = Target Customers × CAC. Example: $2M revenue goal, $10K ACV, 200 customers, $2,000 CAC = $400,000 annual marketing budget.
How much should a SaaS company spend on marketing?
Growth-stage SaaS typically spends 25–45% of revenue on combined sales and marketing. Early-stage companies often invest 50–100%+ of revenue to establish market presence. The right number depends on unit economics, if LTV:CAC is healthy and payback is under 12 months, spending more accelerates growth. If payback is long, increase budget cautiously.
What percentage of revenue should go to marketing?
Rules of thumb by stage: pre-revenue startups often spend heavily on acquisition to find PMF; Series A–B SaaS targets 30–50% of revenue on S&M; mature SaaS may spend 20–30%. Percentage alone is misleading, a company with 6:1 LTV:CAC can afford to spend more than one at 2:1. Anchor budget to revenue goals and proven CAC, not a fixed percentage.
Should I budget by channel or total spend?
Start with a total budget derived from revenue goals and blended CAC, then allocate by channel using historical CAC, ROAS, and conversion data. High-intent channels (brand search, referrals) often deserve more when CAC is low. Paid social may need tighter caps if ROAS is below break-even. Reallocate monthly toward channels with the best unit economics.
How do I reverse-engineer marketing spend from a revenue goal?
Start with annual revenue target, divide by ACV to get customers needed, then work backward through your funnel: customers ÷ close rate = opportunities, opportunities ÷ lead-to-opp rate = leads, leads ÷ visit-to-lead rate = traffic. Multiply customers by channel-specific CAC for budget. This planner calculator automates that reverse-engineering with your inputs.
How often should I revise my marketing budget?
Review performance monthly and adjust allocations quarterly. Shift spend toward channels with improving CAC and ROAS, and cut underperformers quickly. Revise total budget when revenue targets change, when you enter a new market segment, or when unit economics shift (e.g., CAC rises or churn increases). Static annual budgets rarely survive contact with real funnel data.
Related Calculators
CAC Calculator
Measure how much you spend to acquire each new customer by dividing total acquisition spend by new customers acquired.
Funnel Planner
Model conversion rates at each funnel stage to forecast leads, opportunities, and closed revenue.
ROAS Calculator
Measure how much revenue your advertising generates for every dollar spent.
LTV:CAC Ratio
Compare customer lifetime value to acquisition cost to assess whether your growth is profitable and sustainable.